there is no information as to how they will finance the project .. I expect a large rights offering at par ..they would need an equity injection of at least 3 billion if total project cost is 15 billion that implies a 600% rights issue at par Pretty sure their existing equity is worth nothing

How reliable Tristar group is can be judged from the performance of its other entities.

Highly unreliable group...As far as I remember they announced more tha1000%+ rights in 1994/1995 for the purpose of setting up 200-300MW power plant.....This resulted in spike in share price to above Rs. 110.... Later the rights got cancelled.........One can very well imagine the ordeal of shareholders who would have purchased at Rs. 110......

How reliable Tristar group is can be judged from the performance of its other entities.

Highly unreliable group...As far as I remember they announced more tha1000%+ rights in 1994/1995 for the purpose of setting up 200-300MW power plant.....This resulted in spike in share price to above Rs. 110.... Later the rights got cancelled.........One can very well imagine the ordeal of shareholders who would have purchased at Rs. 110......

How reliable Tristar group is can be judged from the performance of its other entities.

Highly unreliable group...As far as I remember they announced more tha1000%+ rights in 1994/1995 for the purpose of setting up 200-300MW power plant.....This resulted in spike in share price to above Rs. 110.... Later the rights got cancelled.........One can very well imagine the ordeal of shareholders who would have purchased at Rs. 110......

Tri star shipping had also announced a 300% rights in 1995....but the company is now history...

Mr. Masood T.Baghpattee, the chief executive of the company appeared for hearing on the givendate and offered explanation. He requested to allow to submit more detailed replyin writing and his request was acceded to. He submitted his explanation in writingin following manner:-

· The company was incorporated in 1992 with a paid capital of Rs. 200million and purchased first bulk carrier cargo vessel my Delta Star. Theship was purchased and 100% financed by the own resources of thecompany and no loan was taken from any bank;

· As a result of successful operation of the company, 15% cash dividendwas paid twice to general public shareholders during 1993 and 1994;· The performance of the company was greatly appreciated by FPCCI and inrecognition of the good performance, a special trophy was awarded byPresident of Pakistan.

· The bankers of the company was Allied Bank who offered to provide loanto company to purchase more vessels and agreed to mortgage the vesselsincluding the existing one as security against such loans. In view ofeconomic viability, and the national requirement of bulk carrier vessels,company agreed to purchase/import five more ships. Pakistan’s annual drybulk cargo shipping requirement is over 10 million tons per year whereasthere was not a single bulk carrier vessels was available under Pakistani flag to carry this cargo and Government of Pakistan is paying overUS$ 1.50 billion every year to foreign shipping companies.

· The company issued right shares for Rs. 400 million and with the loaningarrangement with Allied Bank, Company expanded her fleet from onevessel to Six vessels under national flag.

· In the meantime, with the change of political government, the newgovernment changed the policy towards import of ships and imposed 38%of import levies on it. This was a complete violation of the E.C.C decision,which was taken earlier by the previous government and declared thatthere will be no import levies/taxes on purchase of ships.

· Due to this sudden change of government policy, the company could notbring their ships to Pakistan and carry Pakistani cargo. This meant that noPakistani cargo was available to Pakistani flag ships.

· During 1996, one of the vessel m.v Delta joy met with an accident whileshe was carrying coal to France and some of the coal partly damaged byseawater. The total commercial value of the cargo was USD 1.90 millionhowever the charterer/consignee put a large claim of USD 27 million andarrested 4 vessels of the company in European ports. The company

approached French court who decided to reduce the above amount toUSD 1.45 million and asked the company to put a bank guarantee of 1.45million as security against alleged loss to the water damaged coal cargoand ordered for release of the ships upon receipt of such guarantee.However, it took four months to arrive at such judgment of the court andduring this period, the whole fleet of the company was detained and hugedaily expenses in respect of crew wages, ship expenses, bunkers, and portcharges etc. had to be paid. This situation destroyed the cash flow of thecompany.

· The company requested their bankers to arrange the bank guarantee ofUSD 1.45 million to get release of the ships as per court judgmenthowever, in the meantime the management of the bank changed. The newmanagement decided not to extend any cooperation/assistance tocompany and refused to issue the bank guarantee. Due to this act of bank,company suffered huge losses and filed a case for damages against thebank vide suit no. 1215/97 in Sindh I ugh Court. As a counter blast, ABLalso filed case under suit No. 1591/97 in the same Court.

· While both the above cases were proceeding in the Court, ABL took a veryharsh and illegal step and lodged a false criminal complaint and registereda case against the company. The allegation of the bank was false andnever proved. But as a result of this action by the bank, theundersigned/another director of the company were taken into custody byF.l.A followed by the detention in the jail. The reputation of the companyand the directors were badly damaged. Alter 2 months, the divisionalbench of Sindh High Court issued the judgment with following remarks:-1. “No crime or breach of trust or fraud was committed by the company/directors.”2. “The company was making regular payments of installments of loansto the bank. However, due to circumstances beyond control, thecompany was unable to continue to pay the installments on duedates.3. Copy of the Judgment is on record.

· The company applied for voluntary winding-up in the Sindh High Court dueto the non-cooperation of the bank and the Honourable Court granted thewinding-up petition of the company and judgment was rendered to handover the assets and the properties to official assignee of the court. Thecopy of the Court Order is on record

How reliable Tristar group is can be judged from the performance of its other entities.

Highly unreliable group...As far as I remember they announced more tha1000%+ rights in 1994/1995 for the purpose of setting up 200-300MW power plant.....This resulted in spike in share price to above Rs. 110.... Later the rights got cancelled.........One can very well imagine the ordeal of shareholders who would have purchased at Rs. 110......